Crop canopy temperature (Tc) is coupled with transpiration, which is a function of soil and atmospheric conditions and plant water status. Thus, Tc has been identified as a real-time, plant-based tool for crop water stress detection. Such plant-based methods theoretically integrate the water status of both the plant and its environment. However, previous studies have highlighted the limitations and difficulty of interpreting the Tc response to plant and soil water stress. This study investigates the links between cotton Tc, established measures of plant water relations and atmospheric vapour pressure deficit (VPDa). Concurrent measures of carbon assimilation (A), stomatal conductance (gs), leaf water potential (Ψl), soil water (fraction of transpirable soil water (FTSW)) and Tc were conducted in surface drip irrigated cotton over two growing seasons. Associations between A, gs, Ψl, FTSW and Tc are presented, which are significantly improved with the inclusion of VPDa. It was concluded that utilising the strong associations between Ψl, VPDa and Tc, an adjustment of 1.8°C for each unit of VPDa should be made to the critical Tc for irrigation. This will improve the precision of irrigation in Tc based irrigation scheduling protocols. Improved accuracy in water stress detection with Tc, and an understanding of the interaction the environment plays in this response, can potentially improve the efficiency of irrigation.